Works contract on civil contract

Greetings Balasubramani,

As the developer has not maintained any books, the composite rate on this civil works works contract will be 2% of 23 lakhs. In my opinion it is irrelevant at this point if Mr. Z is not a registered person because of section 6.

As per section 6 of the Tamil Nadu VAT Act, Mr. Y has to meet his VAT obligation out of the margins earned from contract with Mr. Z only i.e. Mr. Y cannot recover the same from any one and as you may know no input tax credit will be allowed.

Kind regards.

First I say thanks to you !!

Land value is included in works contract,  I want to pay the VAT also third party property

Land Name transfer from X to Z Directly

But Y has collect the money from Z and pay to X .

At the time of Land regestriation Z has pay regestriation fees and stamp duty to goverment.

In this case Y Develper want to pay vat on land.  (Land is fully third party property)